Divorce and Taxes

On the long list of things that can make an already unpleasant situation much worse, the issue of dealing with taxes in a divorce case looms large.

Within the swirl of financial questions and headache-inducing cost considerations, it can be difficult to accurately figure where taxes fit in. The following points may help guide your understanding during this difficult time:

Tacit Consent

The doctrine of tacit consent essentially dictates that, if one spouse who is part of a divorce settlement files a joint tax return and the other does not actively object or attempt to file a separate statement, there is an implicit agreement that the joint settlement stands.

Dependency

The consideration of dependency is a major one in divorce cases. Understanding who qualifies as a dependent in your divorce hearing is absolutely essential. For instance, many different groups can fall under this category other than biological or stepchildren, including parents, grandparents, brothers, sisters, stepsisters, etc.

Tax-Adjusted Balance Sheet

An important yet often-overlooked document, the tax-adjusted balance sheet lists the after-tax values of marital assets and liabilities. It takes into account the fact that the value of property may be different depending on its tax basis. Most state laws require some consideration of this nature. However, most tax-adjusted balance sheets are not well-governed in local divorce codes.

Contact Us

A divorce is easily compounded by tax issues. Contact the experienced San Jose divorce attorneys at the Law Office of Daniel Jensen, S.C., today by calling 408-296-4100 to learn more about your options under the law.